IDEAS home Printed from https://ideas.repec.org/a/pal/genrir/v25y2000i2p131-139.html
   My bibliography  Save this article

Exclusions and the Demand for Property Insurance

Author

Listed:
  • Rod Garratt

    (Department of Economics, University of California, Santa Barbara 93106, USA, e-mail: garratt@econ.ucsb.edu)

  • John M. Marshall

    (Department of Economics, University of California, Santa Barbara 93106, USA, e-mail: marshall@econ.ucsb.edu)

Abstract

The paper examines property insurance contracts in which consumers choose the upper limit on coverage. Exclusions are of two types, and both reduce the demand for insurance of the included perils. A practical implication is that an insurer can raise the demand for fire insurance by offering an earthquake rider, and profit from the rider even when the premia are ceded in such a way that the rider does not raise profit directly. The results do not require assumptions about correlations between included and excluded losses, which is interesting because correlations are decisive in most of the other literature on background risk. The Geneva Papers on Risk and Insurance Theory (2000) 25, 131–139. doi:10.1023/A:1008710311509

Suggested Citation

  • Rod Garratt & John M. Marshall, 2000. "Exclusions and the Demand for Property Insurance," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 25(2), pages 131-139, December.
    • Handle: RePEc:pal:genrir:v:25:y:2000:i:2:p:131-139
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/grir/journal/v25/n2/pdf/grir2000126a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/grir/journal/v25/n2/full/grir2000126a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:genrir:v:25:y:2000:i:2:p:131-139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.